Question

find the amount of compond interest on rs 5000for 1 year at the rate of 10%p.a when the interest is compounded half-yearly

Answer 1

Answer:

Given:

Principal (P) = Rs. 5000

Rate (R) = 8 %

As it is compounded half yearly, the rate will reduce to half

R=82%

R = 4 %

Time (t) = 1 year 6 months

= (1+12)yrs

(∵12m=1yr6m=112×66m=12yrs)

= 32yrs

As it is compounded half yearly, the time will be doubled:

t=2×32yrs

T = 3 yrs.

Substituting these values in the formula of Amount, we get:

A=P(1+R100)t

A=5000(1+4100)3

A=5000(104100)3

A=5000×104100×104100×104100  

A = 5624.32

Step-by-step explanation: